| The Collision Repair Industry Today |
 |
| Click Here to Purchase Your Copy of The Digi-Lean Collision Repair System |
|
|
........Some of the biggest issues collision repairers have today are rising administrative costs, increased pressures to do more with less, decreasing margins, increasing insurance company influence on consumers and repair processes, pressure to complete repairers faster than ever before, finding and keeping qualified technicians, ever changing environmental and legal requirements, and much, much more. Below are some historical and recent observations about the collision repair industry and the repair businesses that operate within it.
The collision repair market has been traditionally made up of small, technically led single owner businesses. Their focus was on “pride of workmanship” and a personal, subjective view of quality. There was a local flavor to the industry, with many shops and a strong sense of customer loyalty. Insurance companies had little influence over pricing or quality of work. Businesses thrived by providing a good, quality repair and by having a good reputation.
The Auto Physical Damage Marketplace Today
»Total Revenues are approximately $36 BILLION
»The Market is Flat - Growth is coming at the expense of competition
»Shop population continues to decline (roughly 45,000 shops)
»There is too much capacity in the system
There is enough capacity for $80 BILLION!!!!
20,000 shops can perform the work of the 45,000 in place today
»Claims are down by as much as 20% in some areas
Accident frequency is down by almost 15% since 2002
Totals up to almost 20%
Customer pay repairs are on the increase
»Claims and repair volume is being consolidated
Approximately 2000 locations account for more than 15% of the market
10,000 of the 45,000 shops account for more than 45% of the market
»“Tightening” of estimates by approximately 8%
Labor Guide changes
»Severity (measured by average repair order) has increased from $ 1250 in 1988 to approximately $2400 in $2006, a 92% increase
»Dealer collision centers are capturing approximately 25% of overall business, ($9.8 BILLION) and positioned to grow
Approximately 8,300 locations out of 22,000 new car dealers
Average yearly sales greater than $1.1 MILLION
Many Multi-Location and national collision center organizations
AutoNation has 89 collision centers
Sonic has 37 location
VTAIG has 33 locations
Penske has more than 30 locations with some more than 100,000 Square Feet in size!
| |
|
|
